July 16 (SeeNews) - Belgian logistics property developer Warehouses de Pauw (WDP) said on Thursday it has signed a financing package agreement worth 150 million euro ($171.4 million) with the European Bank for Reconstruction and Development (EBRD), in order to support the company's growth in Romania.
The new funding from the EBRD will support the WDP group in the execution of its business plan in Romania, where it aims to double the portfolio from 500 million to 1 billion euro during 2019-2023, as part of its strategic programme for the period.
"We are confident that the development of high-quality logistics infrastructure promotes sustainability across the entire supply chain, therefore supporting the real economy in Romania," WDP Romania general manager Jeroen Biermans said.
The financing package encompasses a corporate loan with a duration of seven years and will be structured as a term loan.
"Supporting the development of green industrial real estate is a priority in EBRD’s Property and Tourism strategy for 2020-2024. With this sizable investment, EBRD will be contributing to the increase of high quality, sustainable industrial real estate stock in Romania while also collaborating with WDP on the promotion of local economic inclusion," EBRD director for property and tourism Vlaho Kojakovic said.
The proceeds will be used exclusively to fund newbuild development projects at important logistics hubs, enhancing Romania’s logistic infrastructure and employment within a modern and healthy working environment.
The buildings funded by the EBRD will be green certified classifying the loan as a green loan under WDP’s Green Finance Framework. Furthermore, EBRD and WDP will also set up an inclusion project to introduce opportunities for young labour market entrants in Romania to address the high levels of youth unemployment.
In a separate press release, the EBRD said that WDP is planning new development projects at important logistics hubs, enhancing Romania’s infrastructure and creating jobs in a modern and healthy working environment. The bank's financing will contribute to the implementation of a sustainability management framework, comprising international building certifications and the introduction of other green measures that go beyond WDP’s current practices. These include, among others, an upgrade of the energy and water efficiency performance requirements and the rollout of an energy management system across the entire Romanian portfolio.
In April, WDP announced that it plans to double its portfolio in Romania to 1 billion euro by 2023 and for this purpose it has signed a financing package of approximately 205 million euro with the International Finance Corporation (IFC), the World Bank Group's private sector arm.
WDP develops and invests in logistics property, namely warehouses and offices and has a property portfolio of around 5 million sq m. This international portfolio of semi-industrial and logistics buildings is spread over more than 250 sites at prime logistics locations for storage and distribution in Belgium, France, the Netherlands, Luxembourg and Romania.
($=0.875 euro)